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Katy Milkman on How To Make Lasting Changes In Your Life

Elevate with Robert Glazer

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The Psychology of Savings: Commitment Devices and Behavioral Insights

This chapter delves into a study on savings behavior in the Philippines, comparing traditional savings accounts to a more restrictive option that required meeting specific goals. The findings revealed that the commitment device significantly improved savings rates, demonstrating the impact of psychological factors on financial decision-making.

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